FEDERAL PRESERVE REFUSES TO TAKE NEW STEPS TO BOOST THE ECONOMY

The Federal Reserve today announced that it will take no additional action to boost the economy’s current rate of growth, even though the Fed board admitted that it “anticipates that the unemployment rate will decline only slowly toward levels that it judges to be consistent with its dual mandate.” There had been significant speculation before the announcement that the Fed would take additional steps, potentially including a new round of so-called quantitative easing. Republicans have been warning since the financial crisis hit that the Fed’s actions will spark inflation, despite persistently low inflation rates.